Icahn Ramps Up Bets On Genes And Jets: Illumina Stake Jumps 450%, JetBlue Holding Grow 90%
News Summary
According to his latest 13F filing for the quarter ended March 31, billionaire activist investor Carl Icahn significantly boosted his holdings in Illumina Inc. (ILMN) and JetBlue Airways Corp. (JBLU). Icahn increased his stake in genomics giant Illumina by 450%, adding 180,000 shares to bring his total holding to 220,000 shares. This raised its representation in his $7 billion portfolio from 0.07% to 0.25%, making Illumina one of his top percentage gainers this quarter. The move signals renewed conviction in the company, which has been under pressure amid boardroom battles and regulatory scrutiny. Icahn nearly doubled down on JetBlue, boosting his stake by almost 90% with a purchase of nearly 15.9 million shares. He now owns 33.6 million shares of JetBlue, worth over $162 million, making it the 7th largest position in his portfolio. Icahn first took a position in JetBlue in the first quarter of 2024, and this ramp-up suggests he sees serious turnaround potential. While Illumina and JetBlue were among the top buys this quarter, Icahn trimmed exposure elsewhere, most notably Southwest Gas Holdings Inc., which saw a 1.96% drop in portfolio allocation.
Background
Carl Icahn is a prominent American billionaire investor and activist shareholder known for pressuring underperforming companies to make changes. He invests through his company, Icahn Enterprises. Illumina is a global leader in DNA sequencing and microarray technology but has faced regulatory challenges and boardroom battles in recent years. JetBlue Airways is a major US low-cost airline that has been navigating operational challenges and industry competition, while also attempting to complete a controversial acquisition.
In-Depth AI Insights
Why is Icahn betting on seemingly unrelated areas like gene sequencing and discount airlines simultaneously? - This likely reflects Icahn's typical "distressed investing" strategy, where he targets companies whose valuations are depressed due to short-term issues (like regulation, management turmoil, or industry headwinds) but possess long-term potential value. - Illumina represents a high-growth, high-tech area facing execution and governance challenges, while JetBlue represents a cyclical, low-margin area potentially benefiting from operational improvements and industry consolidation (despite antitrust hurdles). - Betting on both could be a way to diversify risk or suggest he believes both companies are near the bottom of their respective cycles. Does Icahn's increased stake in Illumina signal potential new moves regarding its board or strategy? - As an activist investor, increasing a stake is often a prelude to exerting more pressure for corporate change, such as divesting non-core businesses (like Grail), improving operational efficiency, or altering capital allocation strategy. - Given Illumina's recent board battles and pressure to divest Grail, Icahn's increased holding could signal intensified pressure for greater influence over the company's governance and future direction. - Investors should watch for future corporate announcements from Illumina and potential actions from Icahn, which could impact the stock price in the short and long term. What potential turnaround factors might be driving Icahn's confidence in JetBlue? - JetBlue has faced recent operational challenges and regulatory hurdles in its attempt to acquire Spirit Airlines, putting pressure on its stock price, which may have offered Icahn an entry point at a discount. - Icahn may believe that regardless of the Spirit acquisition outcome, JetBlue can unlock value through improved operational efficiency, network optimization, or by benefiting from a general industry recovery or consolidation trend. - His assessment of "turnaround potential" could be based on confidence in (or the ability to pressure for) management's execution capabilities and a long-term view on the resilience of air travel demand.